ECON 7102 - International Trade IV

North Terrace Campus - Semester 2 - 2022

This postgraduate course provides students the tools necessary to understand, analyze, and evaluate recent empirical and theoretical research papers in international trade. This requires strengthening the students' knowledge of trade theory as well as econometric techniques commonly used in international trade. Besides classic trade theory, the course also covers the '(new) new trade theory' which focuses on the role of monopolistic competition and firm heterogeneity in shaping international trade patterns. Special emphasis will be put on empirical and policy-related aspects of international trade.

  • General Course Information
    Course Details
    Course Code ECON 7102
    Course International Trade IV
    Coordinating Unit School of Economics
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 4 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ECON 7072, or ECON 7036, or both ECON 7011 and ECON 7001 or both ECON 7241 and ECON 7243
    Incompatible ECON 4008
    Restrictions Available to MAppEc, & MAdvEc students only
    Course Description This postgraduate course provides students the tools necessary to understand, analyze, and evaluate recent empirical and theoretical research papers in international trade. This requires strengthening the students' knowledge of trade theory as well as econometric techniques commonly used in international trade. Besides classic trade theory, the course also covers the '(new) new trade theory' which focuses on the role of monopolistic competition and firm heterogeneity in shaping international trade patterns. Special emphasis will be put on empirical and policy-related aspects of international trade.
    Course Staff

    Course Coordinator: Associate Professor Shandre Thangavelu

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    This course seeks to improve our understanding of the economic effects of globalization and give answer to these questions.

    The course will focus both on current analytical and empirical research in international trade with a clear general equilibrium (economy wide) focus. This approach is also helpful in other fields of economics including public finance, environmental and resource economics, agricultural or other industry/sector economics, and the economics of politics.

    After completing this course, students will be able to analyze current issues in international trade with analytical rigor. This is essential for both trade policy consulting for governments and the private sector as well as for understanding current research papers in international trade as a preparation for a PhD.

    The course assumes students have the basic toolkit of microeconomics and trade theory from undergraduate courses, which will be built on and applied to analyse contemporary trade and trade-related policy issues.

    On successful completion of this course, students will be able to:

    1. Describe the most important theories used in the academic literature to explain observed trade patterns using formal mathematical analysis.
    2. Sketch the interaction between different stylized facts of international trade patterns and the development of theories which try to explain these stylized facts.
    3. Apply trade theories to describe the effects of trade liberalization policies and to critically evaluate current trade policy discussions.
    4. Identify and reflect upon the individual contributions of important research papers in international trade and constructively criticize their shortcomings.
    5. Have improved their communication skills through presenting their work and by interacting during tutorial sessions and discussions in class.
    6. Describe the most commonly used econometric techniques in current international trade research.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.

    1-6

    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.

    1-6

    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.

    1-6

    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.

    1-4,6

    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.

    1-3,5

    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

    2,4-6
  • Learning Resources
    Required Resources
    The course will be mostly based on the following text book:

    Robert C. Feenstra (2016): Advanced International Trade. Theory and Evidence. Second Edition. Princeton University Press.

    In addition, papers published in academic journals related to the material covered in class will be linked to on myuni.
    Recommended Resources
    Alternative graduate-level textbooks are:

    • Dixit, A.K. and Norman, V. (1980): Theory of International Trade. Cambridge Economic Handbooks.
    • Krugman, Paul R. and Helpman, Elhanan (1985): Market Structure and Foreign Trade Increasing Returns, Imperfect Competition, and the International Economy. MIT Press.
    • Kimura, Fukunari, Mari Pangestu, Shandre Mugan Thangavelu, Christopher Findlay (2021), Handbook of East Asian Economic Integration, Edward Elgar.
    Note that the older textbooks do not cover the more recent developments which we will discuss in class but are perfectly fine for the old classics.

    To recapitulate the most important concepts in international trade at an undergraduate level, students are advised to consult any of the following books (older editions can be used without problem, too):

    • Feenstra, Robert C. and Taylor, Alan M. (2021): International Economics. Fifth Edition. Worth Macmillan.
    • Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc J. (2018): International Economics. Theory and Policy. Eleventh Edition. Pearson.


    Online Learning
    The slides used in each lecture will be uploaded on MyUni after each lecture. Additional links to papers will also be put on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Student participation in lectures is actively encouraged in the form of questions, comments and discussion.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    In addition to the two 2-hour classes each week, students are expected to spend an additional 8 hours each week studying the required readings in advance of and then again following each lecture.
    Learning Activities Summary
    Teaching & Learning Activities Related Learning Outcomes
    Lectures 1-4, 6
    Tutorials 1-6

    week topic  
    1 Introduction
    Static and Dynamic Comparative Advantage
    Globalization and Anti-Globalization: Relevance of Analytical Models
    2-3 Trade and Growth: ‘Uneven’ Impact of Openness Strategies
    Global Production Value-Chains (GVC): Manufacturing and Services
    GVC and Servicification of Manufacturing
    4 Trade between similar countries: Krugman model and monopolistic competition
    5-6 Heterogeneous Firms and Within-industry Adjustments of Trade Liberalization
    7-8 Estimating Trade Costs and the Effects of Trade Agreements: The Gravity Equation
    9-10 Multilateralism, Regionalism and Free Trade Agreements: Analytical and Empirical Framework
    Overlapping FTAs and Utilization of FTAs
    11-12 Student Presentations
    Note: This is a tentative time table and subject to change at the discretion of the lecturer, depending on the general progress during class as well as student feedback.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Task Due Date/ Week Weight Length(Word,Time) Learning Outcomes
    Student presentation/seminar paper TBA 35% TBA 1-4, 6
    Assignments continuous 25% TBA 1-6
    Final Exam Week TBA 40% TBA 1-4, 6
    Total 100%
    Assessment Related Requirements
    The minimum grade to pass this subject is a mark of 50% overall. There are no separate requirements for individual assessments.
    Assessment Detail

    Student presentation/seminar paper 35%

    Depending on class size and at discretion of the lecturer, students either have to prepare a presentation or a seminar paper about a topic (critical summary and analysis of a journal article) related to the content of the course. The due date as well as a list of topics will be will be announced during the lecture.


    Assignments 25%

    Typically, there will be 4 assignments over the semester. 

    Final Exam 40%

    Typically, there will be a 2 hour exam at the end of the course at a time to be advised. The exam will cover the entire course. This includes all materials from the lectures, assigned textbook, and other readings, as well as discussions and exercises considered in the tutorials. The final exam is worth 40% of the course’s assessment.


    General remarks

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process and may affect marks.


    Student grades will be determined in the following way:

    The final grade will be a weighted average of the grade obtained in the presentation/seminar paper (weight 35%), the final exam (weight 40%) and the grade obtained in the assignments (25%).


    Submission
    Submission of assignments via myuni.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment

    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

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